Real Madrid have confirmed that striker Alvaro Morata will join the first team when he returns to pre-season training, dealing a blow to Arsenal and Manchester United's hopes of signing him.
A statement released on Real's official website said the Juventus forward will return to the Spanish capital in the summer after the club activated a buy-back clause in his contract.
Earlier reports suggested that the 11-time European champions could buy back the 23-year-old and then sell him on for a profit, with Premier League sides United, Arsenal, Liverpool and Chelsea among those reportedly interested.
"Real Madrid CF have informed Juventus FC of their decision to salvage the federative rights on the player Alvaro Morata, who will join up with the first team for pre-season training under the command of Zinedine Zidane," the Real statement said.
Morata won two Serie A titles in as many seasons at Juventus, scoring seven goals in 34 league appearances last campaign.
He has also impressed for Spain at Euro 2016, scoring three goals in three games to be the tournament's joint-top scorer with Gareth Bale.
'Sad to leave'
Morata said last week that he was happy at Juventus and wished to continue his career in Italy.
"I can't say much to the Juve fans, I'm sorry, but that's the way it is. I don't know what the future holds for me," the 23-year-old was quoted as saying by Football Italia.
"All I can say for certain is that I feel at home with Juventus and thank all the fans who continue to send me kind messages. I have many friends in Turin and clearly I'd be sad to leave.
"Juve are one of the biggest clubs in Europe and the biggest in Italy. I am happy there and I am really sorry that I cannot say any more on my future, because it's not up to me.
"All I can do is continue to wait and do what I am told."